Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes the impact on MRV's results of operations of recording share-based compensation for the three and six months ended June 30, 2015, and 2014 (in thousands):



	Three months ended				Six months ended
	June 30,				June 30,
	2015		2014		2015		2014
Cost of goods sold	$	25	$	33	$	55	$	53
Product development and engineering	44		50		93		73
Selling, general and administrative	176		245		309		349
Total share-based compensation expense (1)	$	245	$	328	$	457	$	475


(1)	Income tax benefits realized from stock option exercises and similar awards were immaterial in all periods.

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

MRV uses the Black-Scholes option pricing model to estimate the fair value of stock option awards or related modifications. The Black-Scholes model requires the use of subjective and complex assumptions including the option's expected life and the underlying stock price volatility. MRV bases volatility on the Company's historical quoted prices and peer company data. There were no options modified during the three and six months ended June 30, 2015 and 2014.



Six months ended June 30,	2015		2014
Risk-free interest rate	1.7	%	2.0	%
Dividend yield ₍₁₎	—		—
Volatility	43	%	51	%
Expected life (in years)	5.9		5.9


(1)	As the Company does not pay a dividend on a regular basis, and dividends paid in the past have been special in nature, a dividend rate of zero was used.